Churchill Downs Incorporated (CHDN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.36 | — | — | — | 16.94 | 14.31 | 16.47 | 17.04 | 21.99 | 491.20 | 490.44 | 20.35 | 20.39 | 23.52 | 23.89 | 19.79 | 22.74 | 23.93 | 20.82 | 15.91 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 2.36 | 0.00 | 0.00 | 0.00 | 16.94 | 14.31 | 16.47 | 17.04 | 21.99 | 491.20 | 490.44 | 20.35 | 20.39 | 23.52 | 23.89 | 19.79 | 22.74 | 23.93 | 20.82 | 15.91 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 2.36 + — – —
= 2.36
The cash conversion cycle of Churchill Downs Incorporated fluctuated over the years based on the data provided. It measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.
From March 31, 2020, to March 31, 2022, the cash conversion cycle ranged between 15.91 days and 23.89 days, showing some variability in the company's efficiency in managing its working capital.
However, there was a significant spike in the cash conversion cycle for the quarter ending June 30, 2022, and September 30, 2022, soaring to 490.44 days and 491.20 days, respectively. This anomaly might indicate potential issues in managing inventory levels, collecting receivables, or delaying payables during these periods.
The cycle then improved drastically by March 31, 2024, with a reading of 0.00 days, indicating that the company effectively managed its working capital, potentially by optimizing inventory levels, improving accounts receivable collection, and efficiently managing payables.
Overall, Churchill Downs Incorporated's cash conversion cycle analysis highlights the company's effectiveness in converting its assets into cash and managing its working capital over the years.